TVNZ's turn to slug it out with TiVo

Hybrid Television Services chief executive Robbee Minicola with the TiVo personal video recorder.

Strategists at advertising consultancy Total Media are forecasting a slugfest when TiVo launches at the end of the year and challenges the technology advantage of MySky HDi.

Sky Television beat TVNZ in the first major battle with Freeview-exclusive channels.

After July 1 Freeview-exclusive channels TVNZ 6 and TVNZ 7 will be on Sky.

TVNZ, which owns one-third of Hybrid Television Services with Australasian rights to TiVo, will be back in the ring at the end of the year and this time the fight will get personal - personal video recorders, that is.

Advertising strategists at Total Media and The Media Counsel say that time-shifting technology from DVR/PVRs will have a big impact on how people watch television.

The Media Counsel's Michael Carney says the United States experience - where 37 per cent of homes have DVRs - is that TV viewing goes up.

The down side - and free-to-air channels do not highlight this - is that DVR/PVR users fast-forward through ad breaks. That undermines the value to advertisers.

Sky has had a head start in digital TV and time-shifting technology such as MySky.

But TVNZ's stake in Hybrid Television Services might give it a technological advantage over Sky and MySky HDi. With only about six months before TVNZ releases TiVo in New Zealand, details are scarce.

TiVo will offer the same time-shifting services as MySky HDi, albeit for free-to-air rather than pay TV.

In Australia TiVo also offers interactive features such as downloading movies, some of them free and some pay per view.

But TiVo is unlikely to be cheap - it has retailed for A$699 ($875) in Australia. There is also the cost of a fast broadband connection.

The relationship between TiVo and the other free-to-air broadcasters has been awkward. MediaWorks, owner of TV3 and C4, was miffed that it was never consulted about taking part.

Sky-owned Prime TV - which has already resisted joining Freeview - will be in no rush to support the new kid on the PVR block.

Meanwhile, Sky TV's MySky is the only option for 46 per cent of homes that get its pay TV service and its subscribers will be off limits to TiVo.

Technology writer Peter Griffin has said TiVo has confused the market. Only one manufacturer, Zinwell, has been licensed to produce MyFreeview-branded DVR, though Freeview says two more have applied.

Freeview consortium chairman Rick Friesen said the economic downturn may have slowed manufacturers' interest.

Freeview general manager Sam Irvine dismissed a suggestion that the PVR market had been confused by TiVo's handling of its entry at the end of the year.

The choice of a PVR required research in the same way as people researched the market when buying televisions.

He did not see the array of options, including the upcoming launch of a PVR for Freeview customers, as complicated.

As Sky grows rapidly the alignment between Freeview and TiVo will be important. Total Media points out that Freeview has limited exclusive content.

TiVo is compatible only with Freeview in New Zealand and will not work with Sky Channels.

It also must operate with a high capacity broadband connection to enable full functionality.

NEW KID ON THE BLOCK

* Digital Video Recorders (DVRs) or Personal Video Recorders (PVRs) are in 37 per cent of US homes.

* They change people's viewing habits, allowing users to easily record programmes and "timeshift" viewing.

* Sky Television expects 80,000 Sky subscribers will have MySky HDi DVRs by next month.

* Freeview is licensing manufacturers to make MyFreeview-configured DVRs using its digital terrestrial platform.

* Australasian rights owners for TiVo are planning to launch its DVR - a supercharged MySky that allows extra features such as movie downloads from the internet - at the end of this year.